STX Group Plays Down Risk of Power Deal Failure

According to reports from Reuters, the Korean giant STX Group has played down the possibility that its $2.76 billion power deal with the Iraqi government may collapse.

Following report that STX was running out of time to secure a third party financial guarantor, the shipping-to-energy conglomerate says the contract does not mention a three-month deadline to find a third-party guarantor, adding that the issue was likely political in relation to the replacement of the electricity minister in Iraq.

“(We) plan to cooperate with the Iraqi government to complete successfully the issues such as financing,” the company said in the statement.

Iraqi Prime Minister Nuri al-Maliki sacked his electricity minister after the government said an investigation had uncovered irregularities in power contracts with two foreign companies, a source in Maliki’s office said on Sunday.